City council passes business subsidy policy

A public hearing was held at 5:30 p.m. on March 11 before the Barnum City Council meeting. The council presented information on a business subsidy policy at the meeting, and then approved the new policy.

The business subsidy policy will allow the city of Barnum to give financial assistance to new businesses by helping them access funds for startup costs and assistance with salaries.

Mutual Aid Agreement

Fire Chief Corey Hurst presented the Mutual Aid Agreement with the city of Cloquet for a five-year term and with Carlton County for a 10-year term.

The Mutual Aid Agreement allows for the sharing of Barnum, Cloquet and Carlton County fire equipment and firefighters when needed to control and put out fires in these areas. As part of the agreement, the city of Barnum will always have access to fire fighting rigs and equipment during fires that occur at the same time.

Audit

Deb Smith of Wipfli Accounting presented the 2012 Audit of the city of Barnum. She reported that overall the city was $20,857 better than budgeted.

The three areas of income — water, waste, and the Barnum Municipal Liquor Store — were reported. The municipal shows an increase of $25,000 over the previous year. Water showed an income of $130,372, with operational expenses of $73,051. Sewer showed an income of $102,702, with operating expenses of $49,006.

Two areas of concern were presented:

1. A lack of segregation of duties for the campground, utilities, and liquor store receipts (better delineation of the source of funds is needed).

2. Financial statement. Before the city makes a final settlement payment to a contractor, they must make sure the contractor has paid all their sub-contractors and bills involved in the completion of their obligations.

Other business

The council members will prepare a purchase agreement for the Northview Bank site. The council members have contingencies regarding the building, which they will present to the bank. One of the contingencies is a complete inspection of the property. This will be discussed at the April meeting.

Moose Lake Area Chamber of Commerce Executive Director Veronica Fenice presented information to the council regarding the benefits of joining the Chamber. She has agreed to furnish more information and the council will look into if the city can join the Chamber as a non-profit entity.

Utilities Director Brett Collier reported he has completed his Minnesota Rural Water Training in St. Cloud. Water meter changes are still in process. Sewer ponds are at 30 percent capacity. The city will now be allowing holding and septic dumping at the waste ponds. Clerk Bernadine Reed is preparing contract language for companies wanting to use this service. Cost will be $45 a truck.

Barnum Municipal Liquor Store Manager Rose Anthony reported the need for a new 49 cubic foot freezer for ice. The cost of $2,465, plus $146 for delivery, was approved by the council. She has spoken with Bert Edgerton regarding a three-year contract for an ATM machine to be placed at the liquor store. The agreement allows for a $.50 payment to the municipal for each transaction. Edgerton agreed to notify the city 30–60 days before the contract needs renewal. The council will review the contract language and make a decision regarding it.

A flood update was given. The council has approved Resolution 20-13-07 and 20-13-08, State Grant Agreement for Flood Mitigation Funds. Five homes in Barnum were deemed 95 percent loss and are eligible for these funds. As a result of the DNR Mitigation Fund Buy-out, the five properties will become green space areas in the city of Barnum. Nothing can ever be built on these properties and they will be owned by the city. The tax loss is approximately $3,000 annually.

The next regular meeting of the Barnum City Council will be held on Monday, April 8, at 6 p.m. in City Hall.